Late fee paid under Gst is an allowable expenses under section 37 of the Act , Please clarify the correct position . It is nature of penalty or not .
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Quick Summary
This discussion seeks clarification on whether late fees paid under GST are considered an allowable business expense under Section 37 of the Act, or if they are a penalty. While some understand them as allowable expenses, an audit report noted them as a penalty, leading to an adjustment notice. Options for addressing this include requesting a revised audit report or accepting the adjustment and filing a revised return.
My ca mention in Audit Report it is penalty . Notice under section 143(a)(iv) received adjustment of that amount , what procedure adopted by me for allowing that expenses as a business expenses
Option 1 - Ask your CA to revise audit report and then respond as disagree. Option 2 - Accept the adjustment and file revised return if possible if the adjustment amount is small.
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